NEW YORK (Bloomberg) — Crude oil rose to a record $101.32 barrel in New York on rising demand for commodities and concern inflation will erode the value of alternative investments.

A weakening dollar and increasing world demand for raw materials sent oil and commodities including soybeans and platinum to records this week. Federal Reserve Chairman Ben S. Bernanke has indicated to lawmakers that the Fed will cut U.S. interest rates if financial conditions and the availability of credit deteriorate.

"There are 100 reasons for prices to rise because the market is tight," said Adam Sieminski, Deutsche Bank's chief energy economist in New York. "The only thing that will end this rally is a serious economic downturn. Demand is still expected to grow by more than 1 million barrels a day this year." Crude oil for March delivery rose 73 cents, or 0.7 percent, to $100.74 a barrel at 2.50 p.m., a second consecutive record close above $100 on the New York Mercantile Exchange. Prices are up 74 percent from a year ago. The March contract expired yesterday. The more-active April contract was unchanged at $99.70 a barrel.

"We should be looking at oil in the $120-to-$150 area by the end of the year without any major changes," said Peter Schiff, chief executive officer of Darien, Connecticut-based brokerage Euro Pacific Capital, which has $1 billion in customer accounts.

US crude-oil stockpiles probably rose 2.3 million barrels last week, according to the median of 10 responses in a Bloomberg News survey. Supplies jumped 18.2 million barrels, or 6.4 percent, the previous five weeks. The Energy Department is scheduled to release its weekly report on inventories today.

"Once the report comes out traders will probably start buying again, regardless of the numbers,' said Peter Beutel, president of energy consultant Cameron Hanover Inc. in New Canaan, Connecticut.

Brent crude for April settlement fell 22 cents to $98.34 a barrel at 3 p.m. on London's ICE Futures Europe exchange. Futures reached $99.22 a barrel.